As millions of Americans prepare to hit the road over the Fourth of July weekend, they will be happy to know that gas prices across the country and in California are the lowest in three years.
On July 4 of this year, the average price of a gallon of gasoline in California was $4.79, down slightly from $4.84 the previous year and down more than a dollar from $6.24 in 2022.
Marie Montgomery, a spokesperson for the Automobile Club of Southern California, said the two-year decline is a natural recovery from a 2022 peak caused by the war in Ukraine.
After Russia invaded Ukraine in February 2022, the United States imposed sanctions on Russian oil, causing the country’s natural gas prices to rise.
The national average price on July 4 after the Russian invasion was $4.81, up 54% from last year. On July 4 of this year, it dropped to $3.51.
Gasoline prices at a gas station in Buffalo Grove, Illinois, on April 23, 2024.
(Nam Y. Huh/Associated Press)
“Global oil supply concerns have subsided, [when] U.S. oil production has increased in 2023 and we are seeing more returns, but not yet to 2021 levels,” Montgomery said.
Despite recent declines, July 4 gas prices are still about 50 cents higher in California and 40 cents higher nationally than in 2021, according to the Automobile Club.
Montgomery pointed to a variety of factors contributing to the slow cooling of the economy, including inflation and increases in gas taxes.
California’s state tax on natural gas is the highest in the nation and has more than doubled since June 2017, according to the California Taxpayers Association.
On July 1, the state’s natural gas excise tax increased from 57.9 cents per gallon to 59.6 cents per gallon.
Drivers also must pay a federal excise tax of 18.4 cents per gallon.
Montgomery also cited a gradual decline in refineries and oil production in the state. California’s crude oil production is less than 400,000 barrels per day, only one-third of the 1.1 million barrels per day in 1985.
“The state’s capacity to produce gasoline is lower because many refineries are producing other green fuels, such as clean diesel,” she said.
While July 4 gas prices have not yet returned to pre-2022 levels, motorists will still pay less for gas this holiday weekend compared to the past two years.
AAA. A record 60.6 million Americans are expected to drive during the Fourth of July week, June 29 to July 7, a 5% increase from last year.
According to Hertz, Los Angeles was one of the cities with the highest demand for rental cars during these 10 days.
Drivers in Southern California can expect peak congestion on Monday, July 8, traveling southbound on Highway 5 from Bakersfield to Los Angeles, according to AAA.
